CDT Resort Tx Presentation - Sept 2009 FINAL ATT C1
COMMISSION WORKSHOP
CONVENTION DEVELOPMENT TAX
RESORT TAX
OTHER GENERAL FUND REVENUES
September 21, 2009
CONVENTION
DEVELOPMENT TAXES
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CONVENTION DEVELOPMENT
TAXES (CDT)
CDT receipts are collected by Miami-Dade County
Miami Beach receives CDT funds pursuant to an Interlocal
Agreement with Miami-Dade County
Uses of CDT Funds are restricted by State Statute
• Expansion and improvement of the largest public Convention Center in the County
• Construction of new convention centers,, coliseums exhibition stadiums
• Maintenance of convention centers, coliseums, stadiums, exhibitions
• Acquisition/expansion /maintenance of arenas, exhibition halls, and golf courses
Miami-Dade County FY 2009/10 CDT Budget - Revenues
CDT Projected Revenues 36,586,000$
Shortfall Reserve 22,833,000
Performance Arts Center Repayment 1,500,000
Basketball Properties Dev. Agreement Fees 111,000
Total Revenue 61,030,000$
CONVENTION DEVELOPMENT
TAXES (CDT) – REVENUES
3
Miami-Dade County FY 2009/10 CDT Expenditures
Debt Service 20,905,000$
City of Miami Beach Interlocal 4,500,000
City of Miami Interlocal 3,000,000
Museum Support* 2,975,000
Cultural Affairs Grants & South Dade Operating Subsidy 1,770,000
Tennis Center at Crandon Park 1,000,000
Performing Arts Center Trust 12,829,000
American Airlines Arena 6,400,000
Arena Management 500,000
Vizcaya 981,000
Reserve for Debt Service & Shortfall Reserve 6,170,000
Total Expenses 61,030,000$
CONVENTION DEVELOPMENT
TAXES (CDT) –EXPENDITURES
* Includes Miami Art Museum, Miami Science Museum, and Historical Association
CONVENTION DEVELOPMENT
TAX (CDT)AGREEMENT
Pursuant to Interlocal with Miami Dade County, the City receives $4.5
million in CDT funds annually
FY 2007/08 ANALYSIS
Amount
% of
Earnings
FY 2002/03 28,328,419$ 11,920,005$ 42% 4,500,000$ 15.89%
FY 2003/04 33,086,339$ 14,546,348$ 44% 4,500,000$ 13.60%
FY 2004/05 38,342,244$ 16,538,330$ 43% 4,500,000$ 11.74%
FY 2005/06 42,315,011$ 17,442,896$ 41% 4,500,000$ 10.63%
FY 2006/07 45,593,205$ 18,731,737$ 41% 4,500,000$ 9.87%
FY 2007/08 47,924,085$ 20,516,635$ 43% 4,500,000$ 9.39%
% of Earnings
Collected on
Miami Beach
Countywide
Earnings
Earnings Remitted to the CityEarnings
Collected on
Miami Beach
Through the CDT agreement, as amended, the City also received:
1996 - $35 million for capital projects - fully appropriated
2001 - $15 million for capital projects - fully appropriated
2003 - $50 million for the Convention Center which became a $55 million
allocation from the County GO Bond
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RESORT TAX
RESORT TAX
•Allowable uses of the municipal resort tax are related to the
promotion of the tourist industry:
Publicity,
advertising,
news bureau,
promotional events,
convention bureau activities,
capital improvements
maintenance of all related physical assets; and
for the payment of the reasonable and necessary expenses of
collecting, handling and processing of said tax
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RESORT TAX
•The use of the proceeds of the additional one percent (1%) tax are
more specifically identified:
50% for payment of a portion of the debt service on the
Miami Beach Redevelopment Agency – City Center/Historic
Convention Village Bonds
50% split equally into 4 to fund tourism- related Quality of Life
Capital projects in North Beach, Middle Beach and South
Beach and to fund the arts
RESORT TAX BUDGET
FY 2008/09 FY 2009/10
2% Resort Tax
Transfer to the general fund 21.9$ 22.4
GMCVB 5.6 5.0
VCA 1.5 1.5
Marketing / Super Bowl 0.4 0.2
Debt Service 1.5 1.6
Tax Collection and Processing 1.0 1.2
Contingency 0.4 0.09
Sub-Total 32.3$ 31.9
1% Resort Tax
Debt Service 3.5$ 3.5$
Quality of Life Capital and Arts 3.5 3.5
Sub-Total 7.0$ 6.9$
Total 39.3$ 38.8$
Resort Taxes can only be used for tourism-eligible expenses
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GENERAL FUND
ELIGIBLE RESORT TAX USES
$22.4 million is used to offset tourism-eligible expenditures in the following areas:
•Police
•Fire
•Ocean Rescue
• Memorial Day Weekend
• Other Special Events
• Code Compliance
• Cultural Arts Council
• Tourism & Cultural Department
• Citywide Accounts
• Garden Center
• Bass Museum
• Colony Theater Net Expenses
• Miami Beach Golf Course Net Expenses
• Homeless Services
GENERAL FUND RESORT TAX USES
FY 2002/03 15,031,450$
FY 2003/04 16,318,450$
FY 2004/05 18,928,608$
FY 2005/06 19,571,309$
FY 2006/07 19,571,309$
FY 2007/08 20,696,674$
FY 2008/09 21,865,440$
FY 2009/10 (Proposed) 22,465,440$
Resort Tax Transfer to the General Fund
Resort Tax transferred to the General Fund is used to pay for Resort
Tax eligible expenses that are paid from the General Fund.
Administratively, the goal has been to transfer less than the amount of
funds set aside for emergency/contingency reserves
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FY 2009/10 GENERAL FUND
MAJOR REVENUES
FY 2009/10 Proposed
General Fund Revenues
$226,336,026
Fines & Forfeits
1%
Interest
2%
Charges for Svces.
4%
Intergovernmental
4%
Licences & Permits
6%
Other Taxes
11%
Miscellaneous
4%Resort Tax
10%
Property Taxes
52%
Rents & Leases
2%
Other
4%
GENERAL FUND MAJOR REVENUES
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10
Other
Resort Tax
Miscellaneous
Rents & Leases
Interest
Fines & Forfeits
Charges for Svces.
Intergovernmental
Licenses & Permits
Other Taxes
Property Taxes
8
FY 2009/10 GENERAL FUND
EXPENDITURES
Public Safety
58%
Parks & Recreation
13%
Operations
7%
Transfers to Capital
1%
Other
5%
Administrative
Support
9%
Econ Dev & Cultural
Arts
7%
OTHER
Citywide Accounts
Citywide Accounts- Normandy Shores
Operating Contingency
TRANSFER TO CAPITAL
ADMINISTRATIVE SUPPORT
Mayor & Commission
City Manager
Communications
Finance
OBPI
Human Resources/Labor Relations
City Clerk
Procurement
City Attorney
ECONOMIC DEVELOPMENT & CULTURAL DEVELOPMENT
Economic Development
Building
Planning
Tourism & Cultural Development
OPERATION
Code Compliance
Community Services
Homeless Services
Public Works
Capital Improvement Projects
PARKS & RECREATION
PUBLIC SAFETY
Fire
Police
GENERAL FUND EXPENDITURES
OTHER
Citywide Accounts
Citywide Accounts- Normandy Shores
Operating Contingency
TRANSFER TO CAPITAL
ADMINISTRATIVE SUPPORT
Mayor & Commission
City Manager
Communications
Finance
OBPI
Human Resources/Labor Relations
City Clerk
Procurement
City Attorney
ECONOMIC DEVELOPMENT & CULTURAL DEVELOPMENT
Economic Development
Building
Planning
Tourism & Cultural Development
OPERATION
Code Compliance
Community Services
Homeless Services
Public Works
Capital Improvement Projects
PARKS & RECREATION
PUBLIC SAFETY
Fire
Police
0
50000000
100000000
150000000
200000000
250000000
FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10
Other
Transfers to Capital
Administrative Support
Econ Dev & Cultural Arts
Operations
Parks & Recreation
Public Safety